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RBI / 2005-06/378
DBOD Dir (Exp).BC.No. 83 /04.02.01/2005-06
April 28, 2006
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Rupee Export Credit Interest Rates
Please refer to our circular DBOD.Dir
(Exp).No.41/04.02.01/2005-06 dated November 2, 2005 on the captioned subject.
The validity of the interest rates
on rupee export credit indicated in the above circular would now remain in force
upto October 31, 2006. In this connection, you may please refer to RBI
circular No.MPD.BC.280/ 07.01.279/2005-06 dated April 24, 2006. The rates
of interest applicable have been incorporated in the Annex to the Directive
DBOD No.BC.82 /04.02.01/2005-06 dated April 28, 2006 enclosed
to this circular.
Yours faithfully,
(P.Vijaya Bhaskar)
Chief General Manager
DBOD Dir (Exp).BC.No. 82 /04.02.01/2005-06
April 28 , 2006
Interest Rates on Advances
In exercise of the powers conferred
by Sections 21 and 35A of the Banking Regulation Act, 1949, the Reserve Bank
of India, being satisfied that it is necessary and expedient in the public interest
so to do, hereby directs that, with effect from May 1, 2006, the interest rates
on rupee export credit would be as indicated in the Annex enclosed
to this Directive.
(Anand Sinha)
Executive Director
ANNEX
Interest Rates on Rupee Export
Credit of Scheduled Commercial Banks
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Categories of export credit
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Interest Rates(Per cent per annum)
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Effective from May 1, 2006 to October 31,
2006
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1. Pre-Shipment Credit
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(a) Upto 180 days
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Not exceeding BPLR minus 2.5 percentage
points
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(b)Against incentives receivable from Government
covered by ECGC guarantee upto 90 days
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Not exceeding BPLR minus 2.5 percentage
points
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2. Post-Shipment Credit
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(a)On demand bills for transit period
(as specified by FEDAI)
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Not exceeding BPLR minus 2.5 percentage
points
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(b)Usance Bills (for total period comprising
usance period of export bills, transit period as specified by FEDAI
and grace period wherever applicable)
(i) Upto 90 days
(ii)Upto 365 days for exporters under the
Gold Card Scheme
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Not exceeding BPLR minus 2.5 percentage
points
Not exceeding BPLR minus 2.5 percentage
points.
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(c) Against incentives receivable from
Government( covered by ECGC guarantee) upto 90 days
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Not exceeding BPLR minus 2.5 percentage
points
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(d) Against undrawn balances (upto 90 days)
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Not exceeding BPLR minus 2.5 percentage
points
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(e) Against retention money
(for supplies portion only) payable within
one year from the date of shipment (Upto
90 days)
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Not exceeding BPLR minus 2.5 percentage
points
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BPLR: Benchmark Prime Lending
Rate
Note: 1. Since these are ceiling rates,
banks would be free to charge any rate below the ceiling rates.
2. Interest rates for the above-mentioned
categories of export credit beyond the tenors as prescribed above are free and
banks are free to decide the rate of interest,
keeping in view the BPLR and spread guidelines.
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